On 30 June 2022, the Inland Revenue Board of Malaysia (IRBM) has published Public Ruling No. 1/2022 on the time limit for carrying forward unabsorbed adjusted business losses. The objective of this Public Ruling (PR) is to provide an explanation on the time limit for unutilised or unabsorbed adjusted business losses arising from a business of a person to be carried forward.
Effective year of assessment 2019, the period for unabsorbed current year adjusted business losses arising in a relevant year of assessment carried forward is limited to ten (10) consecutive years of assessment. The period of ten (10) consecutive years of assessment commences immediately after the year of assessment the adjusted business loss arises. Any balance of unabsorbed adjusted business losses after the end of the period of ten (10) consecutive years of assessment is to be disregarded.
Therefore, if unabsorbed adjusted business losses arise in the year of assessment 2019, the time limit for the unabsorbed adjusted business losses can be carried forward up to the year of assessment 2028 and any balance of such losses is to be disregarded from the year of assessment 2029.
